X Stocks rolled higher out of the starting gate again on Thursday, with the Nasdaq and S&P 500 chalking off news highs at the open.
The Nasdaq climbed 0.3%, as Alexion Pharmaceuticals (ALXN) and Netflix (NFLX) surged on analyst actions. The S&P 500 futures and the Dow Jones industrial average grabbed 0.2% gains.
Oil prices fell almost 2% after the Organization of Petroleum Exporting Countries agreed to extend its production cap quotas to March 2018, nine months beyond its original projection agreed to in November and formalized at a Dec. 10 meeting. OPEC still needs to meet with Russia and a number of other non-OPEC member countries to secure their participation in maintaining the output curb. Some investors had anticipated a 12-month, rather than a 9-month extension to the agreement. West Texas Intermediate trimmed its early loss to less than 1%, trading just below $51 per barrel.
Early Movers: Best Buy, Netflix, Guess, Aerie Pharma
Retail and apparel makers marked some of the strongest moves in early trade.
Consumer electronics retailer Best Buy (BBY) locked the top slot among S&P 500 issues, up 12% after a 40% gain in first-quarter earnings trounced analyst estimates. Revenue rose 1%, topping expectations for a slight decline. The gain sent shares beyond a buy range, above a 49.50 buy point in a cup base.
Guess (GES) soared 13% after reporting a third straight revenue gain (up 2%) and a narrower-than-anticipated earnings decline after Wednesday's close. Strong sales gains in Europe and Asia compensated for declines in the U.S., and management lowered its second-quarter earnings guidance to below consensus targets.
Williams Sonoma (WSM) punched up 4% after reporting its first-quarter results late Wednesday. Earnings slipped 4%, less than forecast, a 1% revenue met expectations, and management hoisted its Q2 revenue guidance above consensus views. The high-end kitchen goods retailer's shares are trying to climb off the bottom of a deep, 21-month correction.
PVH (PVH) climbed 5% after JPMorgan raised the stock to overweight, from neutral, following a stronger-than-expected first-quarter report delivered late Thursday. Shares remain just below a 104.82 buy point in a cup-with-handle base.
Among FANG stocks, Netflix jumped nearly 3% in opening action after Piper Jaffray maintained the stock's overweight rating and raised its price target to 190, from 166. The stock is extended and taking out new highs after an April rebound from 10-week support.
HP Inc. (HPQ) booked a 4% premarket gain. The hardware arm of the divided Hewlett-Packard reported a narrow first-quarter earnings win and a healthy revenue beat as a 12% rise in notebook sales compensated for a 6% decline on the PC side. HP shares are extended after a February breakout and an April rebound from 10-week support.
China-based 58.com (WUBA) popped 3%, after reporting earnings growth accelerated to a 128% gain in its first quarter. Revenue rose 25%, also above forecasts, and the company boosted its Q2 guidance. Shares of the online classified marketplace were up 57% for the year through Wednesday, and extended after a flat-base breakout in April.
Aerie Pharmaceuticals (AERI) spiked 40% on positive late-trial results for its Roclatan glaucoma eye drop treatment, announced after Wednesday's close. The Irvine-based biotech has pulled back 22% from a March high, and was testing support at its 40-week moving average.
Jobless Claims Steady, April Trade Deficit Widens
First-time unemployment claims inched up to 234,000 in the week ended May 20, the Labor Department reported, below economist expectations for an increase to 237,000 claims.
The U.S. trade deficit in goods widened to $67.6 billion in April, up from a revised estimate of $65.1 billion in March. Economists had projected a narrowing to $64.6 billion. Wholesale inventories declined 0.3%, according to preliminary estimates, vs. March's 0.1% expansion.
The Kansas City Federal Reserve rolls out its regional manufacturing index at 11 a.m. ET. Federal Reserve Gov. Lael Brainard speaks at 10 a.m. ET.
Markets improved to narrowly mixed trade in Europe, with Frankfurt's DAX down 0.2%, the FTSE 100 in London off 0.1% and Paris' CAC-40 up 0.1% in afternoon trade.
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